It is very interesting the discussion on the different approaches to HRS and why they might or might not be feasible in different organizational environments. The theories and how they consider the human element vary significantly from mechanistic- Cartesian to holistic – contingent.

Important elements such as strategic integration, commitment, flexibility and quality are linked to factors such as the organization’s social role and the impact it has on society.

Unfortunately, most of businesses still treat the human and intellectual elements of an organization as exploitable resources; when in reality the ideal scenario would be the exchange of knowledge and resources resulting in something tangible that would benefit society somehow and then generate profits.

Some companies such as Whole Foods Market have demonstrated excellence through higher purposes than just profits. According to McKey and Sisodia it is fundamental that employees are aware of the importance of their work for the others. Social responsibility should not be a separate program within a company, it should be the company itself represented by its employees.

It would be interesting to start this discussion with a couple of definitions on some key concepts that make part of HR management context. According to Pilbeam and Corbridge (2010, pp. 7) organizational transience refers to what is passive of change inside and outside the organizational environment. Besides facing technological disruptions, organizations also face the mutability among employment relations. Combined variables such as technology, globalization, micro and macro-economic scenarios result in a dynamic market place where the notions of job for life and stability have been disrupted. On the other side, there is the generation Y that responds to such changes in an adaptive manner. The Millennial Generation has a commitment to self-improvement and inner satisfaction rather than loyalty to the organization they work for. With that said, one can connect employability and technological improvements. It is of fundamental importance that employees take responsibility for their careers proactively, other than that they will become obsolete. Another interesting point is the link of transactional psychological contract with the X and Y generations. The negotiation aspect involved in the transactional psychological contract showed by Pilbeam and Corbridge (2010, pp. 6) is very much featured in the X and Y Generations’ profile. On the other hand, the relational psychological contract could be associated with the Baby Boomers generation.

There are a range of organizational modifications that impact HR professionals and line managers such as the nature of jobs; downsizing and delayering; markets, disruptive technology, consumer behavior; human capital; knowledge based economy, etc. As the economy goes from industrial based to knowledge based, visible changes on the way of doing business emerge. The workforce is characterized by being computer savvy and innovative. As a consequence of technological advancement and financial crises, the nature of job has also gone through changes. Many employees are working as part-timers or contractors, outsourcing is frequent practiced among multinationals and the concept of cross training is being implemented in several industries such as financial institutions. In the bank where I work for instance, Tellers are no longer just Tellers. The new title is Customer Associate/ Teller. The employees are being cross trained in order to open and close accounts, transfer money, print debit cards, act as loan originators, notaries, solve problems that before were solved by managers, etc. In that way the bank will cut costs and stimulate the development of new skills in its employees.

How should HR professionals and managers address the variables discussed above in order to promote value creation? According to CIPD Surveys (2005, pp. 2) it is of fundamental importance that HR professionals and managers know how to extract the most out of human capital. The survey also demonstrates that psychological contract and change are indelibly linked and in order to manage change successfully, it’s necessary that businesses work to keep a positive psychological contract. Actions such as reward packages including financial and non-financial compensations should be carefully planned according to the employees’ profile. Elements that compose employability such as career advancement, personal development and sense of making part of an organization that has a bigger purpose than just profits are also primordial in order to foster employees’ motivation. According to Mckey and Sisodia (2013, pp. 78) employees want to work for a company in which they feel proud of. There is this intrinsic need of doing something valuable for society which would result in elevated self-esteem and consequently work-place motivation.

In summary, the business environment has been going through technological and ethical changes. HR professionals and line managers are urged to understand and implement those changes into the organizational environment. They need to reconcile organizational and employees goals in order to achieve optimal results.

… your thoughts about credit and ethics made me think of the financial crisis of 2008 in which banks practiced indiscriminate massive lending to a target market that would not be qualified to get loans. Financial institutions switched from traditional banking to speculative banking through ‘securitization‘ and were backed by insurance companies and risk rating agencies. There were visible ethical problems in the lending and borrowing sides. Borrowers did not have any income, assets or jobs. Many people abandoned their mortgages even though it would negatively affect their credit score; they did not feel any moral obligation to pay what they’ve signed for. In the lending side, financial institutions were scamming the system and creating as the author said: the sub-prime mortgage ticking bomb. Interestingly, the author questions the ethical matter affirming that there was nothing financial about the 2008 financial crisis.